New England Chapter - IRS Boston District Liaison Meeting; March 27, 1995.

• Author: McDonough, Robert J.
• Position: Liaison Meeting Special

On March 27, approximately 50 IRS agents and 70 members of the New England Chapter gathered to view the video entitled "Improving the Audit Process," which was jointly produced by the IRS Chicago District and TEI's Chicago Chapter. At the conclusion of the viewing, a panel discussion was held to explore the issues raised by the video. Panelists from the government included Mary Anderson, Boston Branch Chief; Linda Garrard, Chief Appeals Officer, Boston; David Brodsky, Boston District Counsel; Kevin Fay, Case Manager, Domestic; Alan Freed, Case Manger, International; and Ray Berthiaume, Team Coordinator. Representing TEI were members of the Chapter's IRS Liaison Committee John Flaherty, Bob McDonough, and Tom Nee. Other guests included Gail Sunder, newly appointed Chief of Exam for the Boston District, and Paul Bousquet, Chapter Representative for the Connecticut Valley Chapter.

Ray Berthiaume and Tom Nee assumed the role of "traditionalists" arguing for the old way of doing business--"Don't trust the other person and certainly don't disclose any information." Assuming the role of the "progressive" and advocating mutual trust and cooperation were Kevin Fay and Bob McDonough. Kevin acknowledged that there has been a movement away from the traditional hardline bargaining approach in an attempt to resolve issues at the lowest possible level. While the IRS seeks to have more involvement by corporate taxpayers in the audit planning process, the audience discussion made it clear that this involvement is not always occurring. The Boston District will be endeavoring to assure such involvement in the future.

One IRS agent commented from the audience that it would be helpful to know the taxpayer's position on possible proposed adjustments, whether in the form of a formal position paper or informal discussion. Such disclosure would facilitate the closing of issues early in the audit process. Knowledge of the taxpayer's position would assist the government in determining whether to pursue the issue. If the IRS felt that the taxpayer had a strong position, it would likely drop the issue, saving everyone a great deal of time.

This remark, of course, sparked a lively debate over when and to what extent the taxpayer should disclose its position on issues in advance. Tom Nee and others were doubtful about such early disclosure. Many TEI members in New England apparently remain reluctant to disclose their positions in advance, opting instead to waiting until...